Tuesday, November 17, 2020
The UK Government has announced that the temporary GBP1m (USD1.31m) cap for the Annual Investment Allowance (AIA) will be extended until January 1, 2022.
Businesses can claim up to GBP1m in same-year tax relief through the AIA for capital investments in plant and machinery assets. The inflated limit was due to revert to GBP200,000 from January 1, 2021.
Financial Secretary to the Treasury Jesse Norman said: "It is vital that we support business through the difficult months ahead. Extending the Annual Investment Allowance's GBP1m cap will give businesses the confidence they need to invest into next year, helping them to grow whilst benefitting the wider economy too."